This topic provides an overview of borrower payment remittance types, including:
When taking down a commitment to sell whole loans to Fannie Mae, lenders must select a remittance type that identifies both the amount and timing for sending the borrowers’ mortgage payments to Fannie Mae. Not all remittance types are available for all product types. For MBS mortgages, the only remittance type available is Scheduled/Scheduled.
After Fannie Mae purchases a mortgage, it generally will not change the remittance type the lender has selected. Refer to the applicable section of the Servicing Guide for more information about remittance types.
The Actual/Actual (A/A) remittance type is available for whole loans. It is required for HUD-guaranteed and Rural Development-guaranteed mortgages. Lenders must notify Fannie Mae immediately and remit the actual principal and interest collected from the borrower, net of servicing fees, to Fannie Mae.
The Scheduled/Scheduled (S/S) remittance type is available on a negotiated basis for whole loans, including ARMs, and fully amortizing fixed-rate conventional monthly payment first mortgages. It is required for MBS mortgages. Lenders remit scheduled interest (net of servicing fees) and scheduled principal due, whether or not payment is collected from the borrower.
The Scheduled/Actual (S/A) remittance type is available for whole loans. Lenders remit scheduled interest (net of servicing fees) regardless of actual collections from the borrower and actual principal collected the month following receipt of funds.